All right, that shows six o'clock.

The first thing I notice is what we talked about in the budget is we need a monitor here, because that doesn't do anything for us.

But anyway.

Okay.

It shows yours.

Everybody ready?

All right.

So officially open up the uh city council budget study sessions for the fiscal year 26 budget.

Um just going to go over some items here for the first portion before we go over to planning.

Um but the council uh should have uh number of deliverables uh that was sent out.

Start off with the smaller summarized budget data that was submitted April 1st.

This is the uh legally required document.

There was supporting detail also submitted, but I won't go over supporting details at this point because we have this other document that will have all that.

Um so that was the first document go out there.

We won't be mentioning that document too much, but um the second uh deliverable was the budget detail overview that was sent out a few days later.

Um that has a little bit more detail and goes over the priorities in the budget from the mayor's office and uh and assumptions.

We're gonna go over this document a little bit right now.

Um, but the last document that you guys should have received is this uh this is actually a bigger copy I got, but is this uh budget document workbook, which is all the departments that'll be coming for presentation, all in order.

Uh we started doing this a couple years back last year.

We made some improvements on it with this year, so um we'll go over the uh the document with the first uh uh department going over like you have the department's budget, you have the salaries, the mayor's version, and the department head's version, and then you have supporting detail for that department all in the same section.

So um, without further ado, I'm just going to we're going to look at this deliverable the the detail overview and go over some highlights of the budgets.

Um I'm gonna try to do this same as on the screen for the folks in the cloud.

Um so first page obviously is uh a cover letter from the mayor's office.

Um and you guys can read that or proof through it.

This document's also was was available online as well too for the people at home and in the crowd.

Um turning to page two.

Um we you know the first the first paragraph talks about the what we call the the basis of accounting for budget, which is the state accepted basis.

Uh basically we do cash in, cash out budgets.

Uh revenue is cash coming in and expenses are cash going out.

Uh we don't do a full accrual budget because we're not required to uh we just do the cash basis budget because that is the state required uh basis for the budget.

Um the next next section of the data is um related to the fiscal year 25, which is our current year.

Um so what we do uh when we we approve the 26th budget, we also ask for an omnibus budget amendment for the current year budget.

Um if you recall, there's actually hasn't been too many amendments this year uh to the fiscal year twenty-five budget, which shows uh you know that the departments have been staying good in line with their budgets.

Uh but we'll go over a few of the uh comments I have on the current amended budget first and then we'll get into the fiscal year twenty-six budget assumptions.

So uh with the fiscal year twenty-five uh projected budget.

Uh if you recall the current budget uh has about two hundred and eleven thousand dollars that's gonna be added to fund balance with the proposed changes.

We're looking to increase that by three hundred and twelve thousand.

So the total amount that we're gonna add to fund balance projected is about five hundred and twenty-four thousand, which brings the total ending fund balance of approximately twenty-three point two million dollars for the end of the current fiscal year that we're in, uh, which also is about thirty-nine point eight percent of operating revenues.

Um, and again, I don't the questions always ask hey, what's a good percentage that you should have?

Uh white targets over 20%, you know, 20 to 40 percent is always a good uh target to have, but you gotta also look at the dollar amount as well, right?

Uh, when you have a 50 million dollar budget, you know, 12 million may not be enough if something emergency happens, things like that, but that's what the fund balance is.

It's your rain day fund to help uh pay for one-time expenditures, um, and it should not be used to pay for operating expenditure because then you'll be in an operating deficit.

So I think the administration and council have done a good job last few years building it up.

It wasn't too long ago when I first started that the city was in a deficit uh fund balance.

So uh I think I said everybody who's been here, I think everybody deserves a round of applause on that.

So I'm on page two, we kind of go over some highlights of the changes.

I'll go through them real quick, and if you guys want to stop me with any questions, go right ahead.

Uh we can get into it with the departments as well when we get to them.

Uh, but with revenues, uh the license and permits revenues are expected to decrease by 334,000, and that's related to the franchise fees.

So the cable companies eight uh ATT Comcast, while they pay us franchise fees, and then that and there's also peg fees for public education uh things.

So all that money is based on uh the cable the subscribers, but does it's not based on the internet subscribers.

So that revenue has steadily been going down every year because of people cutting accords.

Uh so what that does is that ties into uh a new estimate that's gonna be lowered than what we originally projected to be.

Okay.

Uh the next is the state grant revenue line items, it's expected to increase uh about 806,000, and that is related to uh enhancement grants.

Um, if you recall, there was two enhancement grants that we currently have out there from the state.

One is related to the ambulances that we ordered a couple years ago.

Actually, we just got them in, so now we can recognize the remainder portion of that grant, and then we also have an enhancement grant for uh pavilion at the petting farm.

So again, grant revenue comes in, grant expenses go out, so it's a net zero on the bottom line.

Uh but we're recording that grant because we do know those are coming in now.